LabCorp 4Q Profit Narrows Despite Higher Revenues
LabCorp (NYSE:LH) said its fourth-quarter profit slipped 7.6%, as higher restructuring costs and taxes offset improved testing volume and revenue.
The Burlington, NC-based company posted net earnings of $131.8 million, or $1.26 a share, compared with $142.7 million, or $1.33 a share, in the same quarter last year, hurt primarily by an $80.8 million provision for income taxes.
Excluding restructuring, taxes and other one-time charges, the company earned $1.34 a share, ahead of average analyst estimates polled by Thomson Reuters of $1.31.
Revenue for the clinical laboratory was $1.29 billion, up 11.2% from $1.17 billion a year ago, narrowly beating the Street’s view of $1.25 billion.
LabCorp, which conducts various medical tests, from HIV to substance-abuse, booked higher testing volumes, up 3.6%, as revenue per test climbed 7.3%.
Looking ahead, the company expects to exclude amortization associated with acquisitions, altering its adjusted earnings per share to the range of $6.12 to $6.32 a share from its earlier view of $5.62 to $5.82.
LabCorp anticipates revenue growth of 9.5% to 11.5%.